Cost and Price Analysis for Interagency Agreements Article

Cost and Price Analysis for Interagency Agreements - Article Example In the first section of the article, the author describes details about the cost and pricing analysis, and the various aspects of its differentiation. The author clearly marks that price is the birds-eye view while cost can be understood as the element by element review. Alongside, the author also states that price analysis can be used singly while cost analysis has to always involve price analysis. The ultimate outcome, as the author states, is to have the justification of fairness and reasonability of the analyses. The author also puts forth the idea for the sources of objective data coming from Historical Costs/Prices, Catalog or Market prices, Cost Estimating Relationships (CERs), Government Estimates, and Government Costs/Prices. Alongside this, further information regarding the value and program value has been given that clarifies any thoughts of the utility of the cost and price program. This section of the article gives a very good idea of the importance associated with the c ost and price analysis. The second section of the article is very much specific to the cost and pricing activity and practices in the inter-agency agreements. The article states that it is a common practice to have the price divided into cost components and have each justified with a written statement. The generally and widely used cost components include personnel, travel, equipment, supplies, contractual, construction, other costs, and the indirect costs.